Italy halts Meta’s WhatsApp AI chatbot ban

Italian regulators warn Meta’s new policy could stifle innovation and harm consumers.

Italy halts Meta’s WhatsApp AI chatbot ban
Italy halts Meta’s WhatsApp AI chatbot ban

In a bold regulatory intervention, Italy has ordered Meta to suspend its planned policy that would block rival artificial intelligence (AI) chatbots from accessing WhatsApp’s business tools, citing serious concerns over potential market abuse.

The Italian Competition Authority (AGCM) warned that Meta’s policy, due to take effect in January, could hinder innovation, limit market entry, and impede technical development in the AI chatbot sector, posing risks to both competition and consumers.

The investigation was triggered after Meta revised its business API rules in October, restricting access for widely used AI chatbots, including Perplexity, Claude, ChatGPT, and Poke.

Meta defended its move, stating its API was never designed to distribute third-party chatbots at scale and that businesses using AI for customer service like retailers would remain unaffected.

The company also labeled the AGCM decision as “fundamentally flawed,” arguing that the growing use of third-party AI chatbots puts additional strain on WhatsApp’s systems.

AGCM emphasized that enforcing the policy during the ongoing probe could inflict “serious and irreparable harm.” The ruling aligns with wider European scrutiny of Big Tech, as the European Commission has initiated a parallel investigation into similar practices.

The authority confirmed close coordination with the European Commission to ensure effective oversight, highlighting Europe’s increasing focus on AI regulation and fostering fair competition in the technology sector.